By Larry Moskowitz
The ongoing explosion of specialty cable television channels, wildfire sales of TiVo boxes, geometric growth of digital cable subscriptions and the advent of video on demand is
an absolute nightmare to the advertising industry. In fact, over the past year clients began to openly rebel against paying higher prices for smaller audiences. These same mega-
trends represent a perfect dream for public relations.
The venerable 30-second network commercial is not going the way of black-and-white television just yet. But a potent mix of new technology that puts viewers in command of their
news and entertainment fare -- along with their increasing aversion to the avalanche of advertising spots -- is certainly forcing clients to rethink their marketing
strategies.
Make no mistake. Advertisers are still willing to shell out $2 million for a single spot in the final episode of "Friends" (May 6). The problem for them is that "Seinfeld" and
"Friends" can have only one final episode. And only these seminal programs attract Super-Bowl sized audiences that warrant the expenditure.
Most national advertisers say they will cut spending on television commercials by a whopping 20% in the next five years, according to a recent survey by Forrester Research.
Where will that slice of nearly $60 billion in annual spending be diverted? The Internet, to be sure. Radio, which isn't affected by TiVo, will get its share, and so will
newspapers and magazines.
Through this thicket of thorns for advertisers, an array of opportunities are blooming for non-traditional promotion and messaging, i.e., new forms of public relations and even
some old ones.
The PR parallel to the 30-second spot is the equally venerable video news release, which is used in the content of newscasts and therefore isn't zapped by TiVo. Satellite
media tours often run live on morning and noon shows and they're precisely why viewers tune in. B-Roll footage is used in news and entertainment programming and contributes to
the content that makes television worth watching.
Every television station in the United States with a newscast airs video public relations material. Our global electronic tracking system, Teletrax, is now proving that
virtually all of the major broadcasters around the world regularly use VNRs, SMTs and B-Roll elements.
Automobile launches and breakthrough pharmaceutical approvals are news and they make for great television. Tax tip stories in March and April will always generate substantial
audiences. Winter driving advice in December and January invariably finds its way onto dozens of newscasts. High-tech breakthroughs and new uses for electronic gadgets is
standard fare. And most of this programming enters television newsrooms through, yes, VNRs, SMTs and B-Roll packages.
The new blooms are as varied as wildflowers in Spring: General Motors introduced its new Buick Crossover via Cablevision's "Mag Rack" channel on its interactive cable system;
Siemens news and feature stories regularly appear on news inserts on American Movie Classics; Specialty cable channels as diverse as WE (Women's Entertainment) and Fuse now run
informative inserts that are ideal vehicles for re-worked VNRs, B-Roll and SMTs.
Want to reach males who only might be thinking about buying a new car? Go straight to Spike. How about lighting fixtures? H&G Television will deliver that audience
perfectly. You name a segment of the buying public and there's a channel to serve them.
Cable systems are expanding digital, on-demand systems as fast as their installers can drive to subscriber homes. At the same time, the gamut of video material becomes more
and more valuable to "head end" programmers as compelling content for trigger-happy fingers poised on remote controls.
All of these venues are hungry for programming. And there's no better supplier than the public relations industry.
There are a host of reasons why the PR industry is far better positioned to exploit these opportunities than Madison Avenue:
- The discipline of PR revolves around informing rather than selling, convincing rather than merchandizing. The viewing public has voted against being the target of sales
pitches. That same public has voted for news and information as evidenced by its unending support for more all-news channels than you can click through in an evening; - The PR industry evolved with lean and mean economic gearing. After all, the annual revenue of the entire public relations industry is less than 10% of television advertising
budgets alone. A news insert can be produced for the cost of catering an advertising "shoot"; - Speed. PR initiatives often are conceived, created and executed in days, if not hours in crisis situations. Advertising campaigns can take months to reach airtime.
The future of television is bright. The future of PR could be downright blinding if the industry learns to use the new tools and grasp its share of the advertising pie, which
is now clearly up for grabs.
Moskowitz is president-chairman of the board of Medialink, which he founded in 1986. He can be reached at 212.682.8300; [email protected]